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ECONOMY > Economic Indicators

Japan corporate bankruptcies up 50.3 pct in May

  • June 8, 2021
  • , Jiji Press , 9:40 p.m.
  • English Press

Tokyo, June 8 (Jiji Press)–The number of corporate bankruptcies in Japan with debts of 10 million or more stood at 472 in May, up 50.3 pct from a year before, Tokyo Shoko Research Ltd. said Tuesday.

 

The number had slumped in May last year as courts and lawyers, essential for bankruptcy-related legal procedures, reduced their activities during Japan’s first novel coronavirus state of emergency.

 

In May this year, corporate bankruptcies increased year on year for the first time in 11 months. But the total was the second lowest for May, after the month in 2020, due to the government’s financial support.

 

Liabilities left by bankrupt companies doubled to 168,664 million yen, boosted by a large-scale failure.

 

Bankruptcies related to the coronavirus crisis remained at a high level, exceeding 100 cases for the fifth consecutive month.

 

The overall number of bankruptcies has been kept low thanks to the financial support, but some companies facing delays in recovery and excessive debt are finding it difficult to procure funds, according to Tokyo Shoko Research.

 

“The problem is whether financial institutions are able to take risks to continue providing support,” an official said.

 

The number of bankruptcies is rising in the service industry, including hotels and restaurants, as well as in the construction industry, hit by delayed orders.

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